This article looks at the 12 best places to retire in Austria.
Austria: Quality of Life and Investment Opportunities
Austria, officially known as the Republic of Austria, is a landlocked country in Central Europe. According to the Global Peace Index 2023, it is the fifth-safest country in the world. The country enjoys a low crime rate, high-quality healthcare, and a stable political environment. Due to these reasons, it’s listed amongst the top countries with the best quality of life. Besides first-rate safety and top-class healthcare, Austria is also revered for its high-quality housing and excellent education system.
With its pristine lakes, meandering rivers, more than 3,000 majestic mountains, an extensive network of bicycle paths that’s 10,000 kilometers long, 22,000 kilometers of ski slopes, and 50,000 kilometers of biking trails, this destination is nothing short of a paradise for outdoor enthusiasts. No wonder American expats, especially retirees, are attracted to this country.
The country boasts a very strong economy, too. Its well-developed market economy is open to foreign direct investment, particularly in technology and R&D. However, since the second half of 2022, the Austrian economy has been witnessing stagnation, largely due to the cooling of the global economy and high levels of inflation. By mid-2023, the economy witnessed further deterioration. In particular, the Bank of Austria notes that GDP in the second quarter fell by 0.7% compared to the first quarter. The weak economy is likely to persist for the year, but growth is viable given the expected decline in inflation levels. Consequently, 2023 is likely to end with a 0.1% increase in GDP, while it is forecasted that 2024 will experience a slight acceleration at 0.9%.
Due to its strategic geographical location between Western European nations and the higher growth markets in Central, Eastern, and Southeastern Europe (CESEE), Austria has achieved a significant level of economic, social, and political integration with fellow EU member states and the CESEE. An estimated 220 US companies have their investments in Austria, represented through their subsidiaries. In 2021, FDI in Austria totaled an estimated EUR 12.8 billion (USD 13.6 billion). Additionally, US companies also provide over 17,100 jobs in Austria through their companies. Overall, the country offers a stable and attractive climate for investors.
Housing Woes
Austria may be one of the world’s largest economies, but it has recently become the heart of Europe’s housing woes. Vienna, in particular, has been witnessing some of the most significant declines in Europe. In May 2023, its housing market faced a substantial double-digit drop of 12.2%, compared to its peak over a year ago. Stockholm was down by 6.4%, while other European capitals such as Milan, Zurich, and Madrid showed gains. Offer prices in May dragged down to €7,084 per square meter owing to stricter mortgage rules and a vibrant rental market.
Global Property Guide notes that Q2 2023 has had a 2.21% decline in housing prices, compared to 1.99% in Q1 2023. The real estate agency Real Immobilienvermittlung GmbH notes that rising interest rates and inflation eroding disposable incomes have led more and more families in Vienna to opt for rental apartments rather than property purchase. The agency also suggests that current market conditions, along with price declines, signal a challenging period ahead. As a result, the demand appear weak, with slow adjustment in the market anticipated in the next few months.
A Retirement Haven
Austria may be facing a housing crisis, but remains a popular retirement destination because of its safety, high-quality healthcare, resilient economy, and high quality of life. Owing to these qualities, it has also been deemed as one of the best countries in the world according to immigrants. Such immigrants, especially Americans, are increasingly moving to the country to stretch their retirement savings and live a better quality of life.
Living in Austria as an American can be a rewarding experience, considering the country is 28% cheaper than the United States. Those wishing to retire to Austria from another country may obtain the Austria settlement permit. The “settlement permit without gainful employment” allows financially independent individuals to stay in the country for a period of one year. Moreover, the minimum monthly income requirement for an individual retiree to live in Austria is $2,070. In conclusion, Austria can be an excellent place to retire, offering the perfect backdrop for a peaceful and culturally enriching retirement experience.
Methodology
To compile the list of best places to retire in Austria, we have looked at a number of sources such as Expatica, Plan a Retirement, and Nomads Nation, amongst others. We also looked at forums such as Reddit and Quora to discover what expat retirees in Austria claim are the best places for retirement in the country.
We adopted a consensus approach, assigning one point to each place recommended by a source. Scores were added, and places were ranked based on an ascending order from the lowest to the highest scores.
The cost of living data presented below pertains to monthly expenses of an individual retiree residing in Austria. This cost also includes the monthly rent of a one-bedroom apartment in the city/town center. The figures discussed have been sourced from Nomads Nation and Nomads List, amongst others.
12. Sankt Pölten
Insider Monkey Score: 2
Sankt Pölten is a beautiful retirement haven in the idyllic Lower Austrian countryside. Notable landscapes such as the Wachau Valley, a UNESCO heritage site, are located nearby. Numerous hiking trails lead through rolling hills, lush forests, and meandering meadows that retirees can explore along the way. Danube River and Neusiedlersee are some more scenic spots for relaxation. Besides the charming views, St. Pölten is one of the oldest cities in Austria, dotted with an Old Town bustling with Baroque buildings. Retirees can expect to live a high quality of life in St. Pölten. On average, the monthly cost of living is $2,144, which includes $741 spent on rent.
11. Klagenfurt
Insider Monkey Score: 4
Set on the shores of the stunning Lake Wörthersee, Klagenfurt combines the appeal of outdoor living with an urban lifestyle. Lush greenery and the Alps make for a picturesque backdrop, offering a serene environment for retirees to call home. The city has a Mediterranean climate, ensuring pleasant summer days, sunny winters, vibrant autumns, and mild springs. The 800-year-old city is a Renaissance gem as well, featuring a restored palace, courtyards, and squares. Many of the courtyards are now home to trendy bars, modern boutiques, and beer gardens. On average, the monthly cost of living for an individual expat retiree in Klagenfurt is $2,540, which includes $695 spent on rent.
10. Zell am See
Insider Monkey Score: 4
Nestled in the Austrian Alps on the picturesque Lake Zell, Zell am See is one of the best towns to retire in Austria. The air and water are so good here that the town easily passes for a health resort. Water sports on the Lake, skiing in Schmittenhöhe or Kitzsteinhorn Glacier, and hiking in the Alps is a favorite pastime of retirees. During the summers, the town itself is worth exploring, including a medieval old town with a church and a castle. There are many festivals to attend and great food, music, and arts to immerse in. Depending on needs and lifestyle choices, an expat retiree can anticipate monthly living costs in Zell am See ranging between $1,500 to $2,500.
9. Alpbach
Insider Monkey Score: 5
Deemed as Austria’s prettiest village and ski resort, Alpbach has much to offer retirees. The stunning alpine scenery, pristine natural surroundings, and relaxed pace of life make it one of the best places to retire in Austria for retirees. The Alpbachtal Valley, together with majestic mountains and hillsides, is an outdoor paradise offering numerous hikes and trails. The village also hosts numerous cultural events, festivals, and concerts throughout the year. On average, the monthly cost of living for an individual retiree is $1,050, which includes $322 spent on rent.
8. Feldkirch
Insider Monkey Score: 6
Embraced by stunning alpine scenery, Feldkirch is a quaint town situated in the scenic region of Vorarlberg. Its medieval old town is an enchanting place to explore, dotted with romantic facades, dreamy pergolas, and cobblestone streets. The nearby mountains are ideal to embark on hiking and skiing adventures, or simply enjoying the outdoors. The cultural scene is also rich, with museums, theaters, and historic sites to explore. On average, the monthly cost of living ranges between $1,500-$2,000.
7. Villach
Insider Monkey Score: 6
The city of Villach is situated in the beautiful region of Carinthia; embraced by serene lakes, majestic mountains, and lush landscapes. There are ample opportunities to hike, bike, swim, and simply enjoy the outdoors. Retirees love to enjoy the colorful parades and street parties at Villacher Fasching in February, appreciate the many cultural festivals throughout the year, and relish the vibrant nightlife scene. Villach is one of the best places to retire in Austria with a growing expat community. An individual expat retiree can expect to spend a monthly $641 on rent. Meanwhile, the monthly cost of living (including rent) is $2,421.
6. Graz
Insider Monkey Score: 7
One of the best places to retire in Austria from the USA is the bustling and vibrant city of Graz. Retirees can enjoy a high quality of life here, complete with modern amenities such as excellent healthcare, safety, and education. The city’s well-preserved old town is a UNESCO heritage site with historic buildings and beautiful streets. History buffs will also be interested in exploring the Eggenberg Palace, a mathematical marvel of the 17th century. Graz is also known as Austria’s culinary capital, with many options to try, such as Der Steirer and Salon Marie. Those who live here must try their specialty fried chicken, served with rice or potatoes. The monthly cost of living in the city is $2,310, which includes $652 spent on rent.
5. Bregenz
Insider Monkey Score: 8
Situated at the eastern end of Lake Constance, the third-largest Lake in Central Europe; Bregenz is an exciting place to be. The City by the Lake is home to Austria’s most important harbor and the world-famous Bregenz festival. It also boasts a rich history, with the Baroque St. Martin’s Tower being its centerpiece. Retirees also get to enjoy breathtaking views of the Alpine mountains, as well as plentiful outdoor activities. On average, the monthly cost of living in Bregenz is $2,671, which includes $994 spent on rent.
4. Linz
Insider Monkey Score: 8
Retirees in Linz get to experience a unique retirement when it comes to change and innovation. Its harbor doubles as one of Europe’s biggest graffiti galleries, and it is home to a cutting-edge art-slash-technology museum called the Ars Electronica Center. Embraced by scenic hills and sitting along the banks of the Danube River, Linz also offers breathtaking natural beauty. Its expansive main square, one of the largest in Central Europe, and quaint old town are sights to explore. On average, Linz’s monthly cost of living ranges between $2,000-$2,500.
3. Salzburg
Insider Monkey Score: 9
Salzburg, a city located on the border of Germany, is an interesting choice for retirees. It is nestled amidst the breathtaking Austrian Alps and stretches along the serene Salzach River, offering a beautiful natural backdrop and plentiful opportunities to enjoy the outdoors. Retirees also get to relish historic architecture, such as the Hohensalzburg fortress and the Old Town, world-class events such as the Salzburg Festival, and a vibrant arts scene. On average, the monthly cost of living for an individual expat retiree is $2,644, which includes $1,051 spent on rent.
2. Innsbruck
Insider Monkey Score: 9
Nestled amidst the majestic Austrian Alps, Innsbruck promises retirees a high quality of life, breathtaking natural beauty, and a rich cultural heritage. Despite being popular, the city maintains a small-town feel to it. Its majestic mountains are ideal for enjoying winter sports such as skiing. It is also home to some of the most outstanding hiking trails, dozens of museums, and countless coffee shops and eateries. There are three public hospitals here too. On average, the monthly cost of living for an individual expat retiree is $2,332, which includes $996 spent on rent.
1. Vienna
Insider Monkey Score: 12
Vienna is one of the most popular places to retire in Europe. Consistently ranking high in major quality-of-life indexes; the city is home to exceptional healthcare, safety, and an overall high standard of living. The rich cultural heritage, vibrant city life, and proximity to natural landscapes make it an absolutely charming destination to retire to. Retirees love to relax and enjoy the outdoors at Vienna Woods and the Danube River, explore world-class museums like the Kunsthistorisches Museum and the Albertina, and even spend leisurely hours sipping coffee in cafés. On average, the monthly cost of living for an individual expat retiree is $2,211, which includes $809 spent on rent.
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